investUP Authorised as “Crowdfunding Brokerage”

By Ryan Weeks on Friday 6 November 2015

Savings and Investment

investUP has secured a thumbs up from the regulator.

investUP – formerly described as the crowdfunding “supermarket” – is now fully authorised by the FCA. In conjunction with its new permissions, InvestUP is transitioning away from the pure aggregator model, and towards “crowdfunding brokerage” status. The company believes that it is the first platform in the world to be regulated as such.

The distinction, as explained by investUP, is that aggregators cover only the first phase of the crowdfunding process. investUP’s newly acquired permissions allow the platform to aggregate the crowdfunding market, but also to enable investors to manage all of their transactions in one place. We asked the company’s management team for a more thorough explanation. After all, there are certainly other platforms in this space – Business Agent, for instance – that are authorised and regulated by the FCA.

investUP CMO Dom Wolf explained that his company’s permissions are now comparable to those of a regulated crowdfunding platform. Mr. Wolf described investUP’s permissible actions as follows: 

  • Arranging deals in investments
  • Making arrangements with a view to transactions in investments
  • Dealing in investments as an agent
  • Safeguarding and administration of assets (without arranging) – this is what allows investUP to hold equity investments and to build information tools for portfolio management

The key seems to be that investUP can now continue to assist customers beyond the point of transaction. Wolf calls it “the difference between a marketing site and a brokerage”. In part as a means of accentuating this distinction, we understand that investUP has a range of “robo-lending” tools and a crowdISA wrapper product under development – both of which are intended to cover the full range of InvestUP’s partner platforms.

James Tuckett, Co-Founder and CEO of investUP, commented:

“Crowdfunding is absolutely everywhere with funding volumes growing massively and the number of sites growing dramatically. With the incoming crowdISA next year, now is the perfect time for investUP to be FCA authorised. We’re proud to have created the world’s first crowdfunding brokerage, which makes it simpler and more efficient for investors, regardless of their experience, to build and manage their portfolio. We know that the FCA is dealing with 100s of authorisation applications from crowdfunding sites, so we’re very excited and grateful that investUP is one of the very few to have now been authorised!”

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